TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

The Beach Is Not Enough To Drive Phuket Tourism

Category: Hotels, Posted:07 Sep 2015 | 13:25 pm

The sustained downturn of hotel rates in Phuket should be a cause of concern for island hoteliers and developers alike. According to C9 Hotelworks new Phuket Mid-Year Hotel Market Update market wide average room rates shifted downward by 9% in the first half of the year compared to the same period in 2014. What is highlighted here is that the trend has existed for a sustained period of time and marks a departure from typical cycles as the island now moves towards an increasingly urban landscape. Market maturity is evident and while hotels have been able to hold occupancy, the direct hit has been in sharply declining RevPAR.
It would be a gross mistake for hotels to gloss over the facts by viewing growing airport arrivals as the lead indicator for tourism, while the reality is that a changing geographic base of core business is firmly in the driver's seat. C9's research pointed to statistic by China's leading outbound tour operator Ctrip which shows the average length of stay for Mainland visitors to Phuket is 2.2 days. Comparing the ALOS to those of the legacy European segment, the math attached to the relevance of a volume driven tourism market is fairly straight forward and in this case more tourists are stacking up to less in the big scheme of things.
Another critical factor to hotel performance is the massive influx of unregistered tourism accommodation in Phuket such as condominium and apartment hotels. One only has to look at the large number of new developments offering guaranteed rental returns or investment yields despite the projects not securing hotel licenses. Clearly the government needs to understand the damage this sector is causing to legally operating hotels and ensure compliance is a priority.
While it's quite easy to point to Thailand's lengthy political events as a key influence, but the reality is that Phuket's underlying infrastructure still lacks depth in terms of world class branded tourism attractions. The beach is no longer enough to drive hotel rates at a higher trajectory as currently there are 27 confirmed hotels in the island pipeline and another 4,400 rooms coming online between 2016-2018.
To read the Phuket Hotel Market Update <link>http://www.c9hotelworks.com/downloads/phuket-hotel-market-update-2015-09.pdf*CLICK</link>

Other News

Read more

Thailand Tourism Forum (TTF) 2023 Registration Opens

Category: Hotels|Tourism, Posted:13 Nov 2022 | 16:38 pm The 12th edition of the Thailand Tourism Forum 2023, organized by C9 Hotelworks has opened registration. Set for 16 January 2023 at the Conrad Bangkok the event is the largest annual hospitality gathering in the country. With an impressive set of speakers and quality content, TTF is a  live, in-person (no virtual option), ‘must-attend’  industry […]
Read more

AWC Set to Snap Up Westin Siray Bay Resort Phuket

Category: Hotels, Posted:11 Nov 2022 | 08:06 am Thailand’s growing hospitality conglomerate AWC (Asset World Corporation) has made public plans to acquire the 257-key Westin Siray Bay Resort and Spa Phuket. It is also acquiring the Grand Mercure Windsor Bangkok which has 459-rooms The AWC Phuket portfolio already includes the Phuket Marriott Resort and Spa Nai Yang Beach and Courtyard by Marriott Phuket […]
Read more

Banyan Tree Phuket Launching New Oceanview Branded Residences

Category: Real estate, Posted:10 Nov 2022 | 12:20 pm Phuket’s Banyan Tree is rolling out two new products under their Grand Residences estate. Ten premium oceanview villas are priced in the THB100-150 million range and 40 seaview condominiums with median pricing of THB85 million. Located within the Laguna Phuket integrated destination resort, the group is expected to bring more real estate products to the […]
SiaJai logo

Thailand's Leading Homecare Marketplace